EOFY is coming. Here's what to buy before 30 June (and what not to).

Every year, from about April onwards, the dealership ads start. Buy before 30 June and write it all off. Save thousands. Don't miss out. By June, the showrooms are heaving and the finance brokers are pulling 14-hour days.

Some of those purchases are smart. Some of them are dressed-up impulse buys that the buyer regrets by September. Here's how to tell the difference, what the rules actually are this year, and how to time an EOFY asset purchase so it works in your favour rather than just your dealer's.

The instant asset write-off, in plain English

The instant asset write-off (IAWO) lets eligible Australian businesses claim an immediate deduction for the cost of an eligible asset in the year it's first used, instead of depreciating it over multiple years. The deduction reduces your taxable income for that year.

Three things change year to year, so check the current ATO position before you act:

• The threshold — the maximum cost per asset that qualifies. This has bounced between $20,000, $30,000, $150,000, and "unlimited" (under temporary full expensing) over the past few years.
• Who's eligible — usually defined by aggregated turnover. The threshold for "small business" eligibility has changed multiple times.
• What "first used" means — the asset has to be used for business purposes in the financial year you claim the deduction. Buying it 29 June and having it delivered 5 July is not the same as buying and using it before 30 June.

The exact numbers as of the current financial year change with the federal budget and through-the-year ATO updates, so the move is: ring your accountant in May, ask them what the current write-off threshold is and whether you're eligible, and plan from there.

When EOFY buying actually saves you money

You're a winner on EOFY buying when three things are true:

1. You were going to buy the asset anyway in the next 6–12 months. The write-off accelerates the deduction; it doesn't pay for the asset. If you wouldn't have bought it without the tax angle, the "saving" is illusory.
2. You'll have enough taxable income in this financial year to use the deduction. A $100,000 write-off doesn't help if your taxable income is $40,000. You either lose the rest or end up using the carry-forward losses, depending on your structure.
3. You can take delivery and put the asset into business use before 30 June. This sounds obvious. Every year, dealers oversell their inventory in June and tradies are left with an invoice and no asset until July, missing the deduction.

If all three are true, EOFY timing is genuinely worth it. If even one isn't, hold off.

When EOFY buying is a trap

The classic trap: a dealer convinces you that buying something before 30 June is worth it because of the tax benefit, without checking whether that something is the right thing for your business.

Three red flags:

• The dealer brings up the write-off before you do. They're using a tax incentive as a sales lever. The decision should start with "what asset does my business actually need," not "what's the best tax outcome of buying anything this month."
• The asset's substantially more expensive than what you needed. Upgrading from a 2018 ute you need to a 2026 ute you want isn't a tax strategy. It's lifestyle inflation with a deduction stapled on.
• You're being pushed onto inventory that's been sitting on the lot. Dealers move old inventory in June. The price might look discounted, but the actual deal is sometimes worse than waiting for a current-year model in July.

A reliable test: would you still buy this asset, at this price, in October? If yes, EOFY is fine. If no, EOFY is just the dealer's leverage on you.

What to buy: practical examples

The asset categories where EOFY purchases tend to make sense, in our experience:

• Replacement work vehicles. Utes, vans, trailers that you'd be upgrading inside 12 months anyway.
• Tools and equipment you've outgrown. A second-hand laser cutter for the cabinet maker, a bigger welder for the fabricator, a new bobcat for the small civil crew.
• Tech and IT. Often overlooked. Computers, software, monitors, and POS systems are all eligible asset categories, and the cumulative tax benefit on a $5–10k tech refresh adds up.
• Office fit-outs and minor capital works. Eligibility varies — check with your accountant — but office furniture, signage, and small fit-out items can often qualify.

The categories where EOFY purchases tend to be regretted:

• Luxury upgrades on existing assets (a $90,000 ute when an $70,000 one would have done)
• Gear you don't have a clear use for yet ("I'll find a project for it")
• Personal-use vehicles dressed up as business assets (the ATO is alert to this; expect questions)

Timing the finance, not just the purchase

If you're financing the purchase rather than paying cash, the timing matters here too. A chattel mortgage settles to the dealer, the asset is yours from day one, and your accountant claims the full purchase price as a deduction (assuming you're eligible for the write-off and the asset qualifies).

Two things to watch:

1. Lenders get busy in June. Settlement times stretch from "same day" to "3–5 business days" as volumes peak. Apply at least two weeks before 30 June if you want certainty. Earlier is better.
2. Your BAS lodgement matters too. If you're behind on BAS, some lenders will hesitate. Lodge early in the new quarter if you can.

The conversation to have with your accountant

Before you spend money on anything for EOFY purposes, ring your accountant and ask three questions:

1. What's the current instant asset write-off threshold per asset, and am I eligible?
2. Given my expected taxable income this financial year, how much deduction can I actually use?
3. Is there anything specific to my structure (company vs. sole trader, GST registration, prior-year losses) that changes the answer?

That ten-minute conversation usually clears up whether you're chasing a real saving or a phantom one.

And then the finance bit

Once your accountant has signed off on the what and how much, the finance bit is the easy part. Most asset finance deals for clean ABN profiles settle inside 4 business hours, dropping to same-day in May/June if you've got your documents ready.

If you want a no-obligation quote on an EOFY asset purchase, tap any asset on the home page or drop us a line. We'll talk you through the comparison rate, fees, and structure before you commit to anything.

General information only. Tax outcomes depend on your specific structure and circumstances. Your accountant is the authority on whether any of this applies to you.